If you're considering investing in a Bitcoin IRA (also referred to as a Cryptocurrency IRA), exercising a traditional IRA rollover, or rolling over a Roth IRA, 403b or 401k to a Bitcoin IRA, then your first step is to choose a reputable and trustworthy Bitcoin IRA company or custodian to work with. As this is a relatively risky field, there is a limited selection of companies available within the U.S. market. Whether you're interested in Bitcoin, Ethereum, Litecoin, Ripple, or any other cryptocurrency, it is important to work with a company or custodian that has a successful and verifiable track record with retirement investors and the ability to answer your questions and offer the best options based on your risk tolerance, objectives and budget.
If done wrong, your cryptocurrency IRA can end up costing thousands of dollars in penalties and even get you in trouble with the IRS, which is why it is imperative that you work with a company that has mastered the process and is able to provide 24/7 support regarding any questions or concerns you might have. Also, the best Bitcoin IRA companies have flawless IRS compliance records so you don't end up on the hook for violating federal regulations.
Below is a useful comparison chart that will guide you in finding the best Bitcoin IRA company for your needs. We have obtained the most up-to-date ratings for all three of the companies using well-respected review boards such as BBB, BCA, TrustLink and more, as well as deeper analytic data. You can see all of the relevant details in an expanded review by clicking on the “View Full Review” button beside each of the companies. It would be a good idea to print a copy of this webpage for any future reference needs.
|Catering To||International Investors||US Only||US Only||US Only||US Only|
|IRA Custodian||New Direction IRA||Kingdom Trust||New Direction IRA||Customer Chooses||Preferred Trust|
|Storage Type||Cold Storage||Multisig Online Wallet||Cold Storage or Multisig Online Wallet||Multisig Online Wallet||Multisig Online Wallet|
|Office Location||US, Canada, Dubai||US Only||US Only||US Only||US Only|
|Read Full Review|
IMPORTANT: We would like to remind you that Bitcoin and all cryptocurrencies are highly risky and speculative investments. If you are not an accredited investor, do your due diligence and make sure you understand how cryptocurrencies like Bitcoin work. Do NOT invest any sum of money that you couldn't afford to lose. Many experts, like Mark Cuban, recommend that no more than 10% of one's savings should be allocated to crypto assets. The exact percentage of your portfolio you decide to allocate to cryptocurrencies should vary according to your individual time horizon, risk tolerance, and proximity to retirement. Speak to your financial advisor before making any investment decision.
Both Bitcoin and the second most popular digital currency, Ethereum, are all the rage nowadays. As this chart below shows, the value of the leading cryptocurrency has risen dramatically both year to date and over the last year:
Many experts predict that the price potential for both Bitcoin and Ethereum over the long term could be enormous. The analyst Van-Peterson of Saxo Bank correctly called the Bitcoin price move from approximately $750 to $2,000 in the past year, as did tech guru Kim Dotcom. Now Van-Peterson is forecasting the price of the world's largest cryptocurrency hitting $100,000 in ten years or less. This would represent an incredible 3,483 percent increase off of its recent all-time highs, Van-Peterson said.
To arrive at these dramatic predictions, Van-Peterson assumes that all of the main surviving cryptocurrencies will make up 10 percent of the average daily volumes of the entire ForEx market within 10 years. The average daily volume (ADV) of the foreign exchange is presently around $5 trillion per the Bank for International Settlements. At 10 percent of $5 trillion, this would give the crypto market an ADV of $500 billion.
Van-Peterson says that Bitcoin will hold 35 percent of the cryptocurrency market share. That would give them $175 billion in average daily volume. Van-Peterson assumes that the total market cap of Bitcoin will be 10 times its ADV, which would amount to a $1.75 trillion in market cap for the leading cryptocurrency. The analyst projects around 17 million total (out of the 21 million fixed limited maximum total supply) BTC will exist in 10 years. That only represents a modest gain from today's 16.3 million BTC. By dividing the assumed $1.75 trillion by 17 million Bitcoins, you arrive at a per-BTC value of slightly more than $100,000 each. Van-Petersen stated:
“This is not a fad, cryptocurrencies are here to stay. There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”
Ethereum has already proven itself in a number of strong ‘industrial” types of digital applications in the field of smart contracts (especially pertaining to electricity account management and payment and cash transfer transactions), which means it has secured its place as one of the other surviving one or two cryptocurrencies. Thanks to the dozens of companies involved in the EEA Enterprise Ethereum Alliance (including Microsoft, Intel, BP, JP Morgan, and numerous international banks and financial institutions), Ethereum should only grow stronger with time.
Even if Van-Peterson's lofty projections on Bitcoin might seem overly optimistic, the rapid and virtually limitless growth of Bitcoin helps to explain why many individuals and investors are beginning to think seriously about cryptocurrencies as a substitute for gold in their IRAs and 401(k)s. Others have turned to Ethereum as the new digital version of silver due to its myriad applications and the exposure it provides to the crypto market as a whole without being correlated to the value of Bitcoin itself.
We would like to remind you that although Bitcoin, Ethereum, and other cryptocurrencies are very promising for the future, their value can drop significantly. We have seen Bitcoin drop 30%+ in a matter of hours before. Unlike physical gold and silver, cryptocurrencies are not backed by anything tangible (a point of controversy in the gold vs. Bitcoin debate). As such, they're a unique asset class with no historical precedent. Therefore, invest with caution and do not invest any sum of money that you could not afford to lose.
Besides the possibility of Bitcoin and the other next-most-popular cryptocurrency, Ethereum, soaring in value over the coming decade, there are a number of other solid, viable reasons to add these electronic currencies to a well-diversified retirement portfolio that already includes stocks, bonds, and physical bullion. The so-called digital gold (Bitcoin) and digital silver (Ether) have all of the following significant advantages over traditional fiat (backed by government faith, trust, and credit only) currencies:
N.B.: Whether you decide to invest or not, if it is important to speak to your financial advisor and do your own due diligence about this new asset class. Again, digital currencies in an IRA are a highly speculative type of investment. Do NOT invest any sum of money that you couldn't afford to lose.
The table above is intended to assist you in comparing the reviews and ratings for the best Bitcoin and Ethereum IRA companies. When choosing a firm, it is sensible to consider the following three characteristics which we've outlined in our Bitcoin IRA reviews below:
It's better to go with a firm that boasts as many positive reviews from its customers as possible. Trusted review authorities such as the BBB Better Business Bureau, BCA Business Consumer Alliance, and Trustlink are most important. It is also good to consider whatever feedback is available from reputable websites including Yelp, Complaint Board, and YP. This will speak volumes about the customer service and level of quality from these firms.
The #1 risk when it comes to investing in an intangible digital asset like Bitcoin is the threat of hackers, fraud, and theft. Ask your provider how they plan to mitigate hacking and malware risks. Do they print your private key using an offline machine? Do they use cold storage vaults to protect their customers' keys? Do they use the multi-sig security protocol? Ask them for all the ways they are protecting their clients' assets and see if they have all their bases covered.
We've heard of clients who have waited several months just to have their IRA accounts established and ready for first purchases. You want a Bitcoin or Ethereum IRA company that has a fast (ideally same-day) account setup process. With the explosive speed at which the crypto market moves, waiting weeks before you can purchase your BTC or Etheum might mean paying hundreds of dollars more per token, as demonstrated below:
When you consider all of the criteria we covered above, Regal Wallet (from Regal Assets) and Bitcoin IRA come out on top, due to their relatively high user ratings, excellent reputation within the industry, and how expediently they handle the end-to-end setup process. By contrast, other providers like Broad Financial do not handle the entire process. They simply help you set up an LLC and then let you handle the process on your own which means you have to find your own custodian, exchange, and wallet, and ensure your IRS-compliant the whole time.
The main issue with taking the fully self-directed approach (like with Broad Financial) is that many wallets are not accepting business customers, and those that will will either take weeks to effectively setup an account or will place limitations that will restrict the assets available for purchase. Coinbase, for instance, will limit new accounts to $150 per day. Broad Financial is a great company to use if you're an expert and already have a wallet with high limits. But if you're a beginner, it might be better to choose one of these two companies:
Regal Assets recently launched their Bitcoin IRA service under the name Regal Wallet. The service allows investors to rollover an existing retirement account such as an IRA or 401k into a separate Cryptocurrency IRA. They use offline cold storage to ensure your key is never shared with anyone. The process is also fully insured for the market value of your IRA. The company boasts a Better Business Bureau rating of A+, a Business Consumer Alliance rating of AAA, and more than 1,000 five star reviews from trusted review board TrustLink. Famed Inc. 500 has ranked Regal Assets at their 20th position, which speaks volumes about the integrity, customer satisfaction, and quality of Regal Assets. You can obtain more information about Regal Assets by calling them at 1-877-205-1104. Alternatively, you might:
Bitcoin IRA (BitcoinIRA.com) is also a great company to consider if you want to include cryptocurrencies in your IRA or 401k. They were the first company in the industry to offer digital currencies to retirement investors, and currently support Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash and Ethereum Classic inside retirement accounts. The company promised to be adding more IRA-approved digital currencies and altcoins in the near future. BitcoinIRA has been praised on top financial media outlets such as CNBC, the Washington Post, Forbes, Barron's and many other reputable financial media outlets. We strongly recommend that you request BitcoinIRA's free Bitcoin investment kit that explains everything you need to know to get started.
One of the best aspects of BitcoinIRA is that you have full access to their interface directly from your phone thanks to their proprietary app. Further, you can easily make intra-day trades and follow price movements using this app, through which you can enable push notifications. Lastly, no Bitcoin IRA review would be complete without mentioning that BitcoinIRA also pays out interest to users who lend out their bitcoin and other crypto assets. As of March 2021, BitcoinIRA lets users earn up to 6% APY on their holdings if they lend them out for a defined period of time. Alternatively, you can skip the kit and go straight to the account opening page if you want to get started:
Disclosure: we would like to remind you that we are a 100% independent site and that we are not employed by any of the companies reviewed on this page. We recommend that you always do your due diligence when choosing a company to work with. Call a few, and request their free kits to get a better idea of their offering. Also, keep in mind that digital currencies are a highly volatile and risky investment. You can win big but you can also lose money. Do not invest any amount that you cannot afford to lose.
A Bitcoin IRA is essentially a special type of Self-Directed IRA used to invest in cryptocurrency like Bitcoin and others. Only certain custodians in the US are allowed to open Bitcoin IRA accounts, so please make sure you are working with an authorized and accredited company with a proven track record. The last thing you want is to invest with a non-compliant company and end up paying large penalty fees, or worse: lose your entire investment.
As you might have expected, a Bitcoin IRA is a risky investment. It's not the IRA itself that is risky. It's the asset itself. While gold is a safe investment that has proven the test of time, Bitcoin is relatively new. Although a lot of people like to compare Bitcoin to Gold, it's too early to tell whether Bitcoin will follow the same path and become a trusted hedge against economic collapse and inflation.
In the meantime, the question you have to ask yourself is: do you believe in math-based currencies? That's essentially what Bitcoin and other cryptocurrencies are. They are not tangible and physical like gold and silver. They are entirely digital and exist because of a highly complex blockchain network which is decentralized and offers many advantages over traditional currencies. Bitcoin is a promising cryptocurrency, but we invite you to do your due diligence and learn more about it before you make any investment decision. Companies in this page do offer free kits that explain what the investment is all about. We encourage you to request those kits to learn more about what you are getting into. And as always, do NOT invest any sum of money that you cannot afford losing. This is a highly speculative investment. Unlike the gold price's path which is slow and steady, Bitcoin can go to the moon, or it can go to zero.
The Bitcoin IRA companies and custodians reviewed on this page will usually charge a % markup over the price of Bitcoin, ranging from X to XX%. We recommend that you call a few of them to obtain the best price. Compare not only their price but also their security, their reputation and their hidden fees. Some companies charge for selling or trading, others don't. Some have a live trading platform, others don't. Some use cold storage (recommended) while others don't. Shop around. Aside from the % markup, you will also pay an annual fee which is usually between $100 and $350 depending on the custodian.
You first have to determine if your current IRA or 401k is eligible to be rolled over. Many employers are strict when it comes to allowing transfers and rollovers.
Now, if you currently have a self-directed IRA, you should be able to roll it over or transfer it to Bitcoin and other cryptocurrencies without any issue. A Bitcoin IRA rollover means that your current retirement account's custodian will write you a check for the full value of your account. You then have a period of 60 days to send the funds to your new Bitcoin IRA custodian. If you are late, you will pay a hefty distribution fee. A Bitcoin IRA transfer means the custodian will wire the money to your new custodian immediately. This is the preferred option since you don't need to be the medium between both. You also avoid any chance of missing the deadline and paying a penalty fee.
The IRS rules are very similar to when you invest in gold and silver. You basically need to work with an accredited custodian that will hold you investment on your behalf. You cannot personally hold your crypto. On this page, all the companies we reviewed are authorized to own Bitcoin, Ethereum and other cryptos within an IRA, and they can help you through the entire process.
Yes: Ethereum, XRP and several other cryptos ARE allowed by most companies reviewed here. However, the list changes quite often so please make sure you check in with each company to see which cryptos they allow.
At the end of the day, we recommend sticking to the top cryptos and not venturing into the lesser-known ones, unless you have a very HIGH tolerance for risk and have done your research on those altcoins.
Yes, most likely. Crypto IRA custodians on this page are all experienced in setting up SDIRAs that they use to invest in Bitcoin and other cryptos. Most other investment accounts do NOT allow alternative assets.
We recommend you call a few of them. Request their free kits. Compare their security, fees, reputation and make sure you know about all the hidden fees. These companies change their fee structure quite often to stay competitive.
Absolutely NOT. Traditional IRA custodians will offer ETFs that invest in Bitcoin or other cryptos, but not Bitcoin itself. If you invested in physical gold before, you know the drill! You want the asset, not a piece of paper that invests in the asset.
Yes! Most custodians on this page will allow a traditional or Roth IRA for your Bitcoin, Ethereum or other cryptocurrency investments. Call them and ask them about the different types of accounts they can set up for you.